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Converting /etc/passwd using PADL scripts generates {crypt} from {MD5}?!

Hello all,
I am trying to switch from using NIS / local password files to using LDAP for authenticating server logins as well as pop/smtp authentication.
My confusion is as follows: I downloaded the migrate_passwd.pl (and all the other scripts from the PADL web site) and ran it on my /etc/passwd file; looking at the LDIF that was generated, I see that the userPassword: field starts with  {crypt}$1$ for all my users BUT my system (Fedora Core 1) is using MD5 encrypted passwords (or at least from looking at the PAM configuration it seems to be, and I believe that somewhere around RH8 the installer just configured the system to use MD5 by default).
So, am I not understanding something? Does the migrate_passwd.pl script just assume that everything is crypt? What's going on here?

Thanks Much!